Interim Results
Playtech Limited
24 August 2006
Playtech Ltd
Interim Results for the Six Months Ended June 30 2006
Financial Highlights
•Revenues up by 139% to $46.2 million (2005 - $19.3 million)
•Casino revenues up by 129% to $40.4 million (2005 - $17.6 million)
•Poker revenues up by 851% to $4.8 million (2005 - $0.5 million)
•Adjusted net profit* up by 172% to $37.3 million (2005 - $13.7
million) resulting in a margin of 81% compared to 71% last year
•Adjusted basic EPS* up by 157% to 18 cents (2005 - 7 cents)
•Interim dividend of $18.5 million equating to 8.7 cents per share to be
paid on 6 October 2006, representing approximately 50% of the adjusted net
profit*
Operational Highlights
•Seven new licensees added so far this year - three through migration of
active game sites with the majority accommodating Asian and European players
•New products developed and launched
•Mobile offering - providing Casino gaming through mobile phones
•Videobet - providing access to the land and server based gaming terminals
•Initiating new Asian focused games and product development, including
Mahjong.
•Long-term recruitment initiative underway - Playtech Academy in Estonia
and new development centre in Bulgaria
Avigur Zmora, Chief Executive, commented:
'Playtech is ideally placed to take full advantage of the growth being enjoyed
by global gambling markets. Geographical diversification through the addition of
quality licensees, coupled with our new product pipeline, will allow us to offer
an enhanced and more complete solution to our licensees and their customers. As
a result of our various initiatives, the global markets, in which we hold strong
positions and the continued growth being enjoyed by the online gaming market
worldwide, I look forward to the second half of the year with confidence.'
*excluding founders cash contribution and employee stock option expenses of $6.8
million
For further information:
Avigur Zmora, CEO, Playtech Ltd
c/o Bell Pottinger Tel: 020 7861 3232
www.playtech.com
David Rydell / Peter Otero
Bell Pottinger Corporate & Financial Tel. 020 7861 3232
Chairman's Statement
It gives me pleasure to present the first set of financial results for Playtech
since its shares were admitted to AIM by way of an Initial Public Offering in
March this year.
In the six months under review the Group has made outstanding progress in all
key areas of performance. I am pleased to report that the business has grown
significantly in terms of revenues generated from existing licensees and,
importantly, in terms of winning new high quality clients. In the period, seven
new licensees have been added to the portfolio - bringing the total to 42
operators. Between them, our clients operate 137 gaming sites, making Playtech
one of the world's leading software providers to the gaming industry.
The out-performance of the operations has translated into strong financial
results. In the period, the Group improved revenues by 139% and adjusted net
profit increased by 172%. As a result the Board is pleased to declare its maiden
dividend as a listed company - an interim payment of 8.7 cents a share. Adjusted
basic earnings per share* amounted to 18 cents per share, a 157 % rise, which is
a creditable achievement from a growing company.
The international online gaming market continues to grow strongly for Playtech.
Recent legal issues in the US have caused concern amongst investors in the
online gaming sector, however, as Playtech is not an operator, does not supply
Sportsbook software or have exposure to this section of the market, we believe
that the Group remains in an extremely strong position. It is the Board's firm
view, therefore, that the worldwide trading environment remains robust and that
the US legal issues have not altered the prospects for Playtech in any way.
Playtech is committed to diversifying its business portfolio, in terms of both
geography and product, and I am pleased to report that progress has been made in
both of these areas. The percentage of total revenues derived from the US have
decreased, whilst the contribution from Europe and the exciting Asian markets
have increased. The Group launched two new products last month. Its mobile
product offers players access to Playtech's popular Casino platform through
their mobile phones, whilst the Videobet product provides access to the land
based gaming terminal market, an entirely new market segment for the Group that
utilises the leading expertise that Playtech has gained through the development
of its other online gaming software products.
The Group also has a number of products under development due to be released in
the second half of the year. Mahjong will provide this hugely popular game to
the Asian market and its live gaming offering is also being enhanced to further
support the Asian market in which this type of gaming is favoured.
In a show of particular generosity the founding shareholders of Playtech have
offered the employees of the Group a cash contribution of $6.6m from their IPO
proceeds payable through a designated trust, as an expression of their
appreciation for the hard work and commitment shown to date. For this the
members of the Board would like to extend their thanks. I would also like to add
my thanks to all our employees and to my fellow directors for the significant
contribution they have made to our success.
In summary, the Board is very excited about the prospects for the second half of
the year. Growth in the international online gaming market continues apace and
the Group is building its position in its traditional markets whilst expanding
into growth markets such as Asia. Product development remains at the forefront
of Playtech's strategy which will enable the Group to continue supplying
operators with market leading products and new solutions. As a result we look
forward to a prosperous and successful future.
*excluding founders cash contribution and employee stock option expenses of $6.8
million
Chief Executive's Report
I am delighted to report a very successful first half of 2006, our first as a
publicly quoted Company. Despite the demands that successfully completing the
IPO has placed on the management's time in this period, we still managed to
reinforce Playtech's position as one of the world's leading software providers
to the gaming sector.
The Company has managed to build on its already high historic growth rates
during this period, achieving a 139% increase in revenues compared to the same
period last year and an 172% increase in adjusted net profit*. The poker product
now accounts for over 10% of the Company's top line and is expected to increase
this contribution into the future.
The Board's focus in the first half of the year was to maintain our high growth
rates and this has paid off with the Company registering the fastest growth in
its short history. We would not have been able to achieve this had it not been
for the outstanding efforts of our employees and for this I extend the sincerest
thanks of the Board. As a public company we are now able to offer a share
incentive scheme that rewards such loyalty and this will help us recruit and
retain the quality of staff for which Playtech has become known.
One of the main reasons for becoming a public company was to create new and
exciting business opportunities for Playtech and I am pleased to say that our
aim in this respect has been achieved. We are taking part in much larger
business development opportunities and achieving a higher level of sales than we
ever had before.
Since the Company was established, at the end of 1999, it has been evolving its
strategy to adapt to the changes and dynamic growth within the online gaming
market. Our first transition period involved geographical diversification in
order to reduce exposure to any one particular market whilst taking advantage of
emerging high growth markets such as Asia, and positive changes have been made
in this regard.
We are currently in the middle of our second transition period which is focused
on diversifying the Company's product portfolio by leveraging the success of the
casino software offering in order to become a major multi product supplier. We
are investing considerable efforts into new product development and have
launched two new products last month - namely Mobile gaming and Videobet, our
server based gaming terminals product.
Strategy
Our goal is to be the leading software solution company to the international
online gaming market. In order to achieve this, the Board has set out the
following aims:
1. To continually develop market leading solutions for our licensees which
enable them to increase their revenues
2. To supply a global software solution that is tailored for specific
markets
3. To enhance cross selling opportunities using the unified system
philosophy
4. To continue worldwide expansion
Recruitment Programme
At the heart of any successful software company lies quality employees. In order
to ensure that we attract the highest caliber employees we are undertaking an
extensive recruitment program aimed at enlarging the Company's research,
development and production capabilities. We have established Playtech Academy,
our own computer science academy based in Tartu, Estonia, where 40 graduates are
already studying and receiving a world class, tailored IT education. The first
intake will graduate by the end of September 2006, which will provide a
significant number of new programmers trained to the exact needs of Playtech. In
addition we have established a new development centre in Bulgaria which is in
the process of recruiting its first 20 employees, all of which are IT
specialists.
Our recruitment program is central to our strategy of increasing the number of
licensees and for the introduction and support of new products. Growing our base
in Estonia and expanding into Bulgaria will allow us to keep control of our low
development and production costs whilst increasing our revenue potential.
Licensees
The Board is continuously looking at ways to diversify its licensee portfolio by
adding quality international customers. So far this year seven new licensees
have been added, three of which migrated their active game sites and the
majority of which accommodate Asian and European players. This goes a long way
to achieving the Board's goal of adding between 10 to 12 new licensees for the
year.
Choosing the right partner licensee is very important to Playtech as client
operators carry with them the reputation of Playtech into the wider market. It
is, therefore, of the utmost importance that the Board is confident that a new
licensee has the potential to attract a substantial level of players.
Being a public company provides a level of security and transparency required by
some of our prospective licensees. As a result, we have a good business pipeline
which helps the Board look forward with confidence.
Products
A key part of the Playtech development philosophy is to supply licensees with a
unified system that ensures cross selling and revenue maximization. We are in
the process of adding new products to our traditional Casino, Poker and Bingo
offerings. During the first half of the year we have completed our Mobile
offering as an integrated part of our online Casino offering. Mobile can,
therefore, be used as a stand alone platform or be utilized through cross
selling opportunities directly from the online Casino, Poker and Bingo products.
In addition, we have launched our Videobet product which provides software to
land based, server based gaming terminals. This takes Playtech into a whole new
land based market with software that is based on our market leading online
expertise.
Our new game developments are mainly focused on the Asian and South American
markets, providing players from these areas with the traditional games that they
have grown up with. This approach is much more effective than trying to convert
these conservative gaming markets to Western games that players are unfamiliar
with. For the Asian market we are close to launching versions of Mahjong. The
Mahjong development process will be divided into stages and will continue into
2007. In addition, we are enhancing our live gaming experience in order to
better support our Asian licensees and increase our Casino game portfolio.
Option Plan and Founders' Cash Contribution to Employees
As has been previously stated, the quality of employees is the core of
Playtech's success and it is important that the knowledge base built up within
the Company is maintained and grown. Now that we are a public company we are
able to offer our employees an option plan that will allow them to share in
Playtech's future success.
In addition the founders of the Company who sold shares during the IPO have
offered a one-time cash contribution to show their appreciation for the hard
work and outstanding achievements shown by the Company's employees. The total
amount of the cash contribution was $6.6 million to be distributed amongst
employees. The Board approved this gesture and thanks the founders for their
initiative. While International Accounting Standards dictate that such a cash
contribution be registered as an expense in our income statement, it will have
no impact on the cash flow of the Company due to the fact that the entire sum is
contributed directly by the founders for the benefit of Playtech's employees.
Dividends
Given Playtech's highly cash generative nature we are pleased to announce an
interim dividend payment of 8.7 cents per share. As has been previously stated
it is the Board's ongoing policy to distribute 50% of net profit every year to
shareholders via the dividend.
Outlook and Current Trading
Playtech is ideally placed to take full advantage of the growth being enjoyed by
global gambling markets. Geographical diversification through the addition of
quality licensees coupled with our new product pipeline will allow us to offer
an enhanced and more complete solution to our licensees and their customers.
This is all designed to increase the licensees revenues and through the royalty
model, Playtech's revenues. As a result of our various initiatives, the strong
positions that we hold in global markets and the continued growth being enjoyed
by online gaming worldwide, I am looking forward to the second half of the year
with confidence.
*excluding founders cash contribution and employee stock option expenses of $6.8
million
Financial Review
Playtech concluded the first half of the year with a very strong set of results.
The Group experienced revenue growth in respect of all of its product areas and
its tight control over costs resulted in an encouraging increase in the margins.
A positive cash flow from operations, together with the cash proceeds from the
IPO, placed Playtech in a very healthy position.
The following is a summary of the key elements of the financial results. It
should be noted that all figures quoted exclude the cash contribution from the
founders of the Company to Playtech employees and Employees stock option
expenses to the amount of $6.8 million.
As at 30 June 2006, the Group's revenues were generated by 42 licensees
operating 137 game sites. Revenues have increased from the same period last year
by 139% to $46.2 million (2005 - $19.3 million) which was due to the combined
growth of both the Casino and Poker products. Casino revenues increased by 129%
to $40.4 million (2005 - $17.6 million) and Poker revenues increased by 851% to
$4.8 million (2005 - $0.5 million).
Adjusted operating profit* increased from the same period last year by 166% to
$36.5 million (2005 - $13.7 million), resulting in a margin of 79% compared to
71% in H1 2005. Adjusted net profit* increased by 172% to $37.3 million (2005 -
$13.7 million), resulting in a margin of 81% compared to 71% in H1 2005.
Adjusted basic EPS* increased by 157% to 18 cents (2005 - 7 cents).
Total cost of operations increased from the same period last year by 73% to $9.7
million (2005 - $5.6 million).
Operating expenses increased from the same period last year by 51% to $3.2
million (2005 - $2.1 million). Salaries contributed 52% to this increase,
reflecting the number of employees joining the Group in order to support the
growing operating activities.
Sales and Marketing expenses increased by 37% to $3.7 million (2005 - $2.7
million) mainly as a result of salary increases attributable to the recruitment
of new sales staff, an increase in reseller fees that are paid as a percentage
of revenue and an increase in the number of trade shows attended.
Development costs decreased from the same period last year by 18% to $0.4
million (2005 - $0.5 million), as attributable costs to the development of the
Group's Videobet, Mobile and Mahjong products were capitalized this year. In the
first half of the year additional development costs capitalized under these
activities amounted to $1.0 million (2005 - $0 million).
The increase in General and Administrative expenses to $2.5 million before the
founders' cash contribution to employees (2005 - $0.4 million), is mainly due to
expenses associated with the Company's listing on AIM and a provision for
bonuses. These bonuses have not yet been allocated and, therefore, have been
recorded as General and Administrative expenses.
In accordance with generally accepted accounting principles, the founders' cash
contribution to employees of $6.6 million is included as a one time expense
under General and Administrative expenses. Due to the fact that this
contribution is fully payable by the founders directly to employees, there is no
cash impact on the Group. Employee stock option expenses in H1 2006 amounted to
$0.2 million (2005 - $0 million).
The only company within the Playtech Group that has taxable income is the
Israeli subsidiary. Following an agreement signed with the Israeli Tax
Authorities during H1 2006, this subsidiary paid $0.2 million in back taxes.
Under the terms of the agreement the Israeli subsidiary will pay taxes on a cost
plus basis going forward.
The Group generated $39.1 million of cash over the period from operating
activities (2005 - $13.4 million). The Group cash usage in investing activities
was $2.5 million (2005 - $0.3 million), which mainly accounted for development
costs capitalized due to the Videobet, Mobile and Mahjong products. The group's
financing activities generated $35.0 million from net IPO proceeds, less the
dividend payment to shareholders prior to the IPO (2005 - usage of $10.2
million).
The Cash balance of the Company, as at 30 June 2006, amounted to $89.6 million.
Cash was generated mainly from the net IPO proceeds and from operating
activities and profit. Financing Income is the result of the interest yield on
the Company cash deposits.
On 23 August 2006, the Board declared an interim dividend of $18.5 million
equating to 8.7 cents per share. The dividend will be paid on 6 October 2006 to
those Shareholders and Depositary Interest holders on the record as at 8
September 2006. The ex-dividend date will be 6 September 2006. Shareholders and
Depositary Interest holders may elect to receive the equivalent dividend amount
in pounds sterling.
*excluding founders cash contribution and employee stock option expenses of $6.8
million
CONSOLIDATED BALANCE SHEET
U.S Dollars in thousands
30 June 30 June 31 December
---------- --------- -----------
2006 2005 2005
---------- --------- -----------
(Unaudited) (Unaudited) (Audited)
NON-CURRENT ASSETS
Intangible assets 2,778 357 1,388
Fixed assets 1,460 695 934
Other receivables 108 - 60
--------- ------- --------
4,346 1,052 2,382
--------- ------- --------
CURRENT ASSETS
Cash and cash equivalents 89,587 14,226 17,995
Trade receivables 5,769 5,458 4,189
Related parties and shareholders - 522 -
Loan to shareholders - 23,828 -
Other accounts receivables 683 236 337
--------- -------- --------
96,039 44,270 22,521
--------- -------- --------
TOTAL ASSETS 100,385 45,322 24,903
========= ======== ========
SHAREHOLDERS' EQUITY
Share capital - 10 10
Additional paid in capital 55,637 100 100
Employees stock option reserve 252 - 22
Accumulated profit 36,308 39,273 19,587
--------- -------- --------
92,197 39,383 19,719
--------- -------- --------
NON-CURRENT LIABILITIES 24 8 82
--------- -------- --------
CURRENT LIABILITIES
Trade payables 4,239 4,576 2,987
Related parties 413 339 918
Other accounts payables 3,512 1,016 1,197
--------- -------- --------
8,164 5,931 5,102
--------- -------- --------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY 100,385 45,322 24,903
========= ======== ========
CONSOLIDATED INCOME STATEMENT
U.S Dollars in thousands
For the six months For the
ended year ended
-------------------- ----------
30 June 30 June 31 December
----------- ----------- -----------
2006 2005 2005
----------- ----------- -----------
(Unaudited) (Unaudited) (Audited)
Revenues 46,178 19,300 47,596
Operating expenses (3,237) (2,105) (4,676)
Sales & Marketing expenses (3,746) (2,690) (5,421)
Development costs (395) (456) (1,021)
General & Administrative expenses (9,132) (357) (931)
-------- ------- --------
(16,510) (5,608) (12,049)
-------- ------- --------
Operating profit before charges
related to founders' cash
contributions to employees and
Employees stock option plan
expenses 36,464 13,692 35,569
Charges related to founders' cash
contributions to employees (see
(Note 4) (6,566) - -
Employees stock option plan
expenses (230) - (22)
------- ------- -------
Total benefit charges (6,796) - (22)
Operating profit 29,668 13,692 35,547
Financing income 1,076 10 149
Income before taxation 30,744 13,702 35,696
Tax expenses (254) (12) (22)
------- ------- -------
Income from continued activity 30,490 13,690 35,674
------- ------- -------
Loss on disposal of subsidiary - - (5)
------- ------- -------
Net income 30,490 13,690 35,669
======= ======= =======
Earnings per share (in Cents)
Basic 15 7 18
Diluted 14 7 18
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
U.S Dollars in thousands
Employee
Additional stock
Share Paid in options Accumulated
capital Capital reserve profit Total
------- ------- --------- ----------- ------
FOR THE SIX MONTHS ENDED
30 JUNE, 2006
Balance at 1 January 2006 10 100 22 19,587 19,719
Changes in equity for the
period
Net income - - - 30,490 30,490
-------- -------- -------- --------- --------
Total recognized income and
expense for the period - - - 30,490 30,490
Dividend paid - - - (21,000) (21,000)
Initial Public Offering
proceeds - 59,862 - - 59,862
Share issue costs - (4,335) - 665 (3,670)
Cancellation of issued
shares (10) 10 - - -
Founders' cash contribution
to employees (see Note 4) - - 6,566 6,566
Employees stock option
reserve - - 230 - 230
-------- -------- -------- -------- -------
Balance at 30 June 2006 - 55,637 252 36,308 92,197
======== ======== ======== ======== =======
FOR THE SIX MONTHS ENDED
30 JUNE 2005
Balance at 1 January 2005 10 100 - 25,583 25,693
Net income - - - 13,690 13,690
------- ------- ------- -------- --------
Balance at 30 June 2005 10 100 - 39,273 39,383
======= ======= ======= ======== ========
FOR THE YEAR ENDED
31 DECEMBER, 2005
Balance at 1 January 2005 10 100 - 25,583 25,693
Changes in equity for the
period
Net income - - - 35,669 35,669
------- ------- -------- -------- -------
Total recognized income and
expense for the period - - - 35,669 35,669
Dividend paid - - - (41,000) (41,000)
Share issue costs - - - (665) (665)
Employees stock option
reserve - - 22 - 22
------- ------ ------ ------- -------
Balance at 31 December 2005 10 100 22 19,587 19,719
======= ====== ====== ======= =======
CONSOLIDATED CASH FLOW STATEMENT
U.S Dollars in thousands
For the six months For the
ended year ended
------------------ ----------
31
30 June 30 June December
------- ------- --------
2006 2005 2005
------- ------- --------
(Unaudited) (Unaudited) (Audited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 30,490 13,690 35,674
Adjustments to reconcile Net income to Net
cash provided by operating activities (see
below) 8,652 (256) (436)
-------- -------- --------
Net cash provided by operating activities 39,142 13,434 35,238
-------- -------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Cash outflow from disposal - - (5)
Cash inflow from acquisition - - 51
Long term deposits (117) - -
Acquisition of fixed assets (768) (335) (696)
Acquisition of intangible assets (645) - (12)
Capitalized development costs (1,007) - (356)
------- ------ -------
Net cash used in investing activities (2,537) (335) (1,018)
------- ------ -------
CASH FLOWS FROM FINANCING ACTIVITIES
Loan to shareholders - (11,000) (15,087)
Related parties and shareholders (205) 829 1,094
Security deposits - - 25
Dividend paid (21,000) - (12,890)
Share issue costs (3,670) - (665)
Initial Public Offering proceeds 59,862 - -
-------- -------- --------
Net cash provided by (used in) financing
activities 34,987 (10,171) (27,523)
-------- -------- --------
INCREASE IN CASH AND CASH EQUIVALENTS 71,592 2,928 6,697
CASH AND CASH EQUIVALENTS AT BEGINNING OF
PERIOD 17,995 11,298 11,298
-------- -------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD 89,587 14,226 17,995
======== ======== ========
ADJUSTMENTS TO RECONCILE NET INCOME TO NET
CASH PROVIDED BY OPERATING ACTIVITIES
Income and expenses not affecting operating cash flows:
-------------------------------------------------------
Depreciation 241 126 313
Amortization 262 56 122
Employees stock option plan expenses 230 - 22
Founders' cash contribution to employees 6,566 - -
Others 11 (2) 7
Changes in operating assets and liabilities:
Increase in trade receivables (1,580) (2,891) (2,341)
Decrease/(increase) in related parties (301) - 7
Increase in other receivables (345) (70) (173)
Increase in trade payables 1,253 2,186 1,287
Increase in other payables 2,315 339 320
-------- ------- -------
8,652 (256) (436)
======== ======= =======
For the six months For the year
ended ended
------------------------- ------------
30 June 30 June 31 December
----------- ----------- ------------
2006 2005 2005
----------- ----------- ------------
(Unaudited) (Unaudited) (Audited)
NONCASH TRANSACTIONS
Loan to shareholders satisfied by
dividend - - 27,905
=========== =========== ===========
Dividend - - (27,905)
=========== =========== ===========
NOTE 1 - GENERAL
A. Playtech Limited (the 'Company') was incorporated in the British Virgin
Islands on 12 September 2002 as an offshore company with limited liability.
B. The condensed interim consolidated financial information include the
accounts of the Company and all its subsidiaries which together are referred
to as the 'Group'.
C. The condensed interim financial information as at 30 June 2006, and 2005 and
the six months then ended, respectively, have been reviewed by the Group's
external auditors.
D. The financial information are expressed in United States Dollars in
thousands.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The consolidated interim financial information of the Group has been prepared in
accordance with International Financial Reporting Standards, including
International Accounting Standard ('IAS') and interpretations (collectively
IFRS) adopted by the International Accounting Standards Board ('IASB') and
endorsed for use by companies listed on an EU regulated market.
These results have been prepared on the basis of accounting policies expected to
be adopted in the Group's full financial statements for the year ended 31
December 2006 which are not expected to be significantly different to those set
out in Note 2 to the Group's audited financial statements for the year ended 31
December 2005.
The financial information is presented in U.S. dollars because that is the
currency the Group primarily operates in.
The financial statements for the year ended 31 December 2005, which were
prepared under IFRS received an unqualified audit report. These financial
statements are also available from the Company's website.
The financial information for the periods ended 30 June 2005 and 30 June 2006
contained in this interim announcement is unaudited.
NOTE 3 - EARNINGS PER SHARE
Earnings per share have been calculated using the weighted average number of
shares in issue during the relevant financial periods. The weighted average
number of equity shares in issue and the earnings, being profit after tax are as
follows:
For the six months For the
ended year ended
------------------------ -----------
30 June 30 June 31 December
----------- ---------- -----------
2006 2005 2005
----------- ---------- -----------
(Unaudited) (Unaudited) (Audited)
Net income 30,490 13,690 35,669
=========== =========== ===========
Denominator - basic
Weighted average number of equity
shares 206,924,493 200,000,000 200,000,000
=========== =========== ============
Number Number Number
Denominator - diluted
Weighted average number of equity
shares 206,924,493 200,000,000 200,000,000
Weighted average number of option
shares 7,747,512 - 510,542
=========== =========== ===========
Weighted average number of shares 214,672,005 200,000,000 200,510,542
=========== =========== ===========
NOTE 4 - FOUNDERS' CASH CONTRIBUTION TO EMPLOYEES
In June 2006, following the IPO, the founders of the Company have allocated
$6,566 thousand, of their own personal funds, into a trust fund to the benefit
of the Company's employees. The Company accounted for this cash contribution as
capital contribution.
Earnings per share before founders' cash contribution to employees (in Cents):
For the six months For the
ended year ended
------------------------- ------------
30 June 30 June 31 December
---------- ----------- ------------
2006 2005 2005
----------- ----------- ------------
(Unaudited) (Unaudited) (Audited)
Basic 18 7 18
Diluted 17 7 18
Net income before founders' cash
contribution to employees 37,056 13,690 35,669
=========== =========== ===========
Denominator - basic
Weighted average number of equity
shares 206,924,493 200,000,000 200,000,000
=========== =========== ===========
Number Number Number
Denominator - diluted
Weighted average number of equity
shares 206,924,493 200,000,000 200,000,000
Weighted average number of option
shares 7,747,512 - 510,542
============ =========== ===========
Weighted average number of shares 214,672,005 200,000,000 200,510,542
=========== =========== ===========
NOTE 5 - SHAREHOLDERS EQUITY
A. Share capital
30 June 30 June 31 December
--------- ---------- -----------
2006 2005 2005
--------- ---------- -----------
Authorized N/A(*) 200,000,000 200,000,000
----------- ----------- -----------
Issued and fully paid 213,333,333 200,000,000 200,000,000
----------- ----------- -----------
On 24 February 2006, the Company repurchased all of its 1,000,000 outstanding
ordinary issued shares of $0.01 par value and cancelled them. The existing
shareholders then subscribed for and were issued and allotted by the Company,
200,000,000 ordinary shares of no par value for an aggregate subscription amount
of $10 thousands.
(*) Following the IPO, which gave rise to additional paid in capital of $55,527
thousand after issue costs, the Company has no authorized share capital but is
authorized under its memorandum and article of association to issue up to
1,000,000,000 shares of no par value.
B. Distribution of Dividend
In March 2006, immediately prior to the IPO, the Company distributed $21,000
thousand as dividend to its existing shareholders.
This information is provided by RNS
The company news service from the London Stock Exchange
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